Indonesia expects investment to grow by 10 percent

Jakarta (Antara News) - Indonesia is expecting this year`s investment to grow like before the economic crisis reaching around 10 percent following the passage of the new investment bill into law by the House of Representatives on Thursday.

"Before the crisis the investment growth reached around 10 percent. Between 2000 and 2006 the growth was at an average of seven percent but last year only three percent. We must now set the target of investment growth at around 10 percent again in real terms," trade minister Mari Elka Pangestu said here on Thursday after attending a plenum of the House of Representatives to pass the bill into law.

She said to improve the investment atmosphere the country needed to improve not only the investment law but also other relevant laws such as taxation law, simplify licensing procedures, reducie red tape and economic cost.

Following the passage of the investment bill into law the government planned to finalize several implementation regulations, she said, adding that two of them could likely be finished soon.

She said the two presidential decrees that would soon be completed were about criteria and listing of businesses which were open and closed to investemnt and on implementation of integrated services.

The minister said the new investment law also provided simplification of investment application and licensing procedures and services and confirmed the role of the Capital Investment Coordinating Board as coordinator of investment policy implementation.

She hoped that with the simplification of procedures, tbe time to process licensing and investment applications could be reduced from 97 to 30 days only.

She said the new investment law would replace the domestic and foreign investment laws of 1967 and 1968.

"The essence of the new law is legal certainty as it provides equal treatment to domestic as well as foreign investment, transparency, accountability, guarantees against nationalization and in dispute settlement," she said.(*)
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